The fallout from the COVID-19 pandemic has changed consumer behavior and fundamentally restructured the global economy. To survive, companies need to adapt. Fast.
One lesson is clear: Those armed with operating models that enable them to continuously adapt are more likely to prosper. However, 74% of C-suite executives feel they will need to completely rethink their operating models to be more resilient as a result of COVID-19. Organizations that fail to act now risk getting buried by the competition long before the next crisis.
Beyond value of shares to shared value
As we look towards a post-pandemic future, every company must consider their raison d’etre. Why they exist, their purpose and how they will create value—not just to shareholders but to extended stakeholders: their customers, employees, and the wider community. Defining a clear organizational purpose acts as the North Star to guide not only the overall corporate strategy but the operating model itself. Sustaining a sense of purpose over time means creating an understanding of how all levels and roles contribute to the organizational purpose.
Foresight begets agility and resilience
In a world of massive data proliferation, every company is challenged to derive insight from information. It’s another challenge that’s been exacerbated by the crisis. In fact, 68% of executives we surveyed ranked capturing insights as the most important element of the organization’s operating model for adapting to the COVID-19 crisis. Yet only 17% had full confidence their organization had the necessary insights to make the right business decisions.
Ecosystems as agents for change
90% of C-suite respondents consider building an ecosystem business model important for their company as they navigate the effects of the pandemic. Why? Partnerships allow organizations to rapidly access capabilities to refine their market approach. By turning to a trusted network of partners and alliances, companies can access the customers, capabilities, talent, and ideas needed to respond to changing market trends, new technologies, emerging competitive threats, and regulatory changes.
Making the change
By designing the operating model to create a state of perpetual motion, organizations can withstand unexpected disruption and rapidly exploit new opportunities. Here are some concrete actions for building agility and resilience.
Resilience now and in the future
Companies looking to gain the resilience and agility demanded by today’s competitive environment—in the short-and long-term—need to focus on their operating models. Specifically, that means harnessing insights, structuring and reskilling the workforce and re-invigorating partnerships to maximize organizational flexibility.